At the urging of the Golden State Warriors, the league investigated Cleveland's signing of McCaw as a restricted free agent before releasing him. McCaw played two seasons with the defending champions but did not re-sign with them last summer. The Cavs signed him last month to a two-year, $6 million offer sheet, which the Warriors chose not to match.
McCaw played in three games for the Cavs and was waived before his contract became guaranteed. He signed with Toronto last week.
The league said Monday it found "no violation of the league's collective bargaining agreement, including the anti-circumvention rules."
The Cavs could have forfeited a draft pick had they been found guilty of any offenses.